Surge in mills’ demand pushed the rates to touch new highs amid tight supply, dealers said on the cotton market on Monday. The official spot rate was higher by Rs 50 to Rs 6,800, dealers said. In both Sindh and Punjab seed cotton prices were at Rs 3300 and Rs 3450 per 40 kg, respectively, they said. In ready business, over 10,000 bales of cotton changed hands between Rs 6900 and Rs 7150, they said.
Leading experts said that rates went up following the reports that current spell of rains may continue in the cotton belt. Focussing on the same issue, cotton analyst, Naseem Usman said that prices are on upward march and likely to move up further if cotton damages due to rainy water in the field. He said that rains could be beneficial for cotton crop in the Punjab as the plants are still not fully mature, it may hurt crop in Sindh which is currently in flowering stage.
Some other analysts were of the opinion that the farmers and growers would take measures to save crop from damage. If rainy water stands in the field, it can hurt crop, but the growers were not ready to face any loss, they said. They also said that as a result of rising demand due to short supply, China will extend auctions of its state reserve cotton for an additional month to meet strong demand from spinning mills, in a move that may ease demand for imports in the world’s top textile market. The following deals were reported: 400 bales of cotton from Hyderabad at Rs 6900/7000, 1200 bales from Sanghar at Rs 6900/7000, 1200 bales from Mirpurkhas at Rs 6900/7000, 400 bales from Kotri at Rs 6950, 100 bales from Maqsoodo at Rs 7000, 1400 bales from Shahdadpur at Rs 7000, 1600 bales from Tando Adam at Rs 7000, 200 bales from Samundri at Rs 7000, 200 bales from Bahawal Nagar at Rs 7075, 200 bales from Vehari at Rs 7090, 400 bales from Haroonabad at Rs 7100, 300 bales from Burewala at Rs 7100/7150 and 200 bales from Chichawatni at Rs 7150, dealers said.